Dáil Éireann díospóireacht -
Wednesday, 6 Dec 1995

Vol. 459 No. 4

Adjournment Debate. - Tomato Industry.

Mr. R. Burke

I thank the Ceann Comhairle for allowing me to raise on the Adjournment the problems experienced by tomato growers, the majority of whom are located in the Rush, Lusk and Skerries areas of my constituency.

This has been a disastrous year for the tomato industry which has already gone through a period of change. In 1977 approximately 400 acres of tomatoes were grown in glasshouses. By 1992 this had been reduced to 136 acres and by 1994 it had been further reduced to 122 acres. There are approximately 55-60 tomato growers in the country and approximately 45 of these are located in the Dublin region. There are approximately 300 people in this industry which earns £5 million in sales. The efficient core producers produce approximately 11,000 tonnes of tomatoes annually, half the consumption rate of 22,000 tonnes. The word "crisis" is much abused but in this case it is very much a reality for those employed in the industry and their families.

It costs approximately £4.50 to produce a box of tomatoes. This is broken down as follows: £1.60 for labour; 50p for the box; 25p for fertiliser, £1 for plastic, packaging and twine and £1.15 for gas. This year growers received approximately £3.50 per box. It is absolutely essential for the Government to take action similar to that taken in Belgium where £7 million was made available to the industry this year to compensate it for currency differentials, particularly as regards Spain.

I ask the Minister to provide assistance to this industry and to save the 300 jobs. This would amount to a subsidy of 50p per box for the 1.3 million boxes produced this year. I also ask him to look at the gas prices paid by tomato growers here as compared with the prices paid by growers in other countries. For example, Irish growers pay approximately 30p per therm while growers in the UK pay approximately 15p per therm. The producers need assistance if they are to buy the seed and fertilisers and to continue in production in 1996. Finally, I ask the Minister to agree to the meeting requested by the IFA so as to ensure we have a stable and efficient industry which will give a good return to those people who invest and work in it in the years ahead.

Minister of State at the Department of Agriculture, Food and Forestry (Mr. Deenihan)

I have met the tomato growers on two occasions since I came into office. I brought in the supermarket people, retailers and wholesalers, to meet them and to encourage them to buy more Irish produce. I have been available to meet them at all times during that period. I recently set up a horticultural forum which for the first time has brought together the producers, farming organisations, retailers and wholesalers to discuss ways of ensuring that more Irish produce will find its way on to the shelves in supermarkets. I hope this will lead to an increased demand for Irish produce, including tomatoes, and will help to secure the 300 jobs in this industry.

The tomato market throughout the European Union has been in a depressed state for some time because of over supply of product and consequent low prices. As Deputy Burke knows, Dutch tomatoes were finding their way to our market and that certainly affected the price. Spain is bringing in a large quantity of tomatoes from its colony, the Canaries. The Spanish were encouraged by European Union policy to produce more tomatoes and that is one of the reasons the Dutch are finding it difficult and have suffered casualties in the industry.

Tomatoes are one of the products covered by the common organisation of the market for fruit and vegetables and member states are precluded from assisting the sector other than in accordance with the terms of that regime. The provision of a subsidy as Deputy Burke suggests is not permissible.

I recently met representatives of the industry and explained the position to them. I listened to their problems and I would like to do something to help. This resilient group faces tough competition but wants to stay in business and it has my sympathy.

Grants at very generous rates have been payable to the protected crop sector in recent years. Over £200,000 was paid in grant assistance under the greenhouse grants scheme 1989-94. Under the operational programme for rural development 1991-93 almost £100,000 was paid in grants to the sector at the rate of 40 per cent with a 50 per cent rate in disadvantaged areas. Under the first tranche of the Operational Programme for Agriculture, Rural Development and Forestry 1994-99 (OPARDF) approvals for a total of £20,000 have already been approved for the sector.

In addition the Minister for Agriculture, Food and Forestry, Deputy Yates, recently reintroduced the farm improvement programme for horticulture at an enhanced rate of grant of 35 per cent. These may seem small measures but an effort is being made to help this sector. Deputy Burke raised the question of the price of gas but I had already taken this matter up with the Minister for Transport, Energy and Communications and I hope he may be able to do something. I am prepared to meet the tomato growers at any time.

Mr. R. Burke

The Belgians get some assistance.

Mr. Deenihan

I have taken note of that and I will have it checked out. I would be very surprised if the Belgians are going outside the parameters of the scheme. I repeat I will make representations about the price of gas which is a major cost factor.

Mr. R. Burke

That is no comfort.